Date:18/04/2007 URL: http://www.thehindubusinessline.com/2007/04/18/stories/2007041802020300.htm

Back PSU fertiliser cos eyeing sick units of FCI, Hind Fert

Ambarish Mukherjee

New Delhi April 17 Three profit making public sector fertiliser companies have evinced interest in taking over the sick units of Fertiliser Corporation of India (FCI) and Hindustan Fertiliser Corporation Ltd (HFC).

The companies that have shown interest are Rasthriya Chemicals and Fertilisers Ltd (RCF), National Fertiliser Corporation Ltd (NFL) and the cooperative unit Kribcho, official sources said. "These would be essentially brownfield expansions utilising the existing infrastructure. The existing plants are almost scrap and new plants with latest technologies would be set up," officials said.

According to rough estimates, the new plants would involve investment of around Rs 1,600-1,700 crore each because of available infrastructure at the sites.

Of the eight sick units, HFC's units are located in Durgapur, Haldia and Barauni and the FCI units are at Gorakhpur, Singri, Ramagundam, Talcher and Korba.

The FCI plants have a total accumulated loss of Rs 12,059 crore and the HFC units together have an accumulated loss of Rs 9,675 crore taking the total to Rs 21,734 crore. Of this, around Rs 17,000 crore is interest due to the Central Government.

The sources said, "Now that there is approval from the Cabinet, the rehabilitation package for each plant would be worked out and placed separately before the Cabinet for case-by-case approval."

According to projections made by the Department of Fertilisers, the new plants could be made operational in three years from now since the national gas grid is already in place and the Petroleum and Natural Gas Ministry has assured supply of natural gas from 2009-10 onwards.